Saudi Basic Industries Corp (Sabic), the world's biggest petrochemical firm by market value, said its first quarter net profit fell 5 percent to 7.27 billion riyals ($1.94 billion) from a year earlier.

The decline has been blamed on higher input prices.

Analysts surveyed by Reuters estimating the chemicals, fertilisers, metals and plastics conglomerate would post profits of 6.74 billion riyals.

Sabic's profits fell sharply in the last quarter of 2011 after two successive quarters of record profits achieved on the back of surging product prices and strong global demand. It posted net profit of 7.69 billion riyals in the first quarter of 2011.

Since Sabic products are used in a wide variety of industries, from car manufacture to house construction and cheaper retail goods it is highly sensitive to movement in the global economy.

'Demand will continue in 2012 from Sabic's traditional markets in China, the kingdom and Europe,' Sabic CEO  Mohamed Al Mady said in March.

'It is true that growth in China fell from 8.5 percent to 6.5 percent but I don't think there is a fear of a decline in demand from China.' 

Last year several Sabic subsidiaries brought new production lines onstream, helping to boost sales against the performance of a year earlier.  - Reuters